of the scheme in the United States and Canada suffered a total loss of
approximately $2 Million
FORT WORTH — Ryan Steve Magee, a
citizen of Canada, was sentenced this morning by Senior U.S. District Judge
Terry R. Means to 97 months in federal prison and ordered to pay $2,372,573 in
restitution, following his guilty plea in February 2017 to one count of wire fraud,
announced U.S. Attorney John Parker of the Northern District of Texas.
Magee, 34, was indicted in July 2016 on five
counts of wire fraud. Magee was arrested in December 2016, and has
remained in custody since his arrest.
According to plea documents filed in his case, Magee was a business man
and an active day trader in the U.S. stock market. Beginning in 2011, and
continuing until the end of 2013, Magee devised and operated a scheme to
obtain money by means of false and fraudulent material pretense and
representations. Magee solicited and obtained money from victim
investors by making false representations about how their money would be
invested, how much of their money would be invested, how much their investment
was earning, how much money they had in their account, and by making other
Specifically, J.C. and D.C. decided to invest some of their savings with
him. At Magee’s direction, D.C. wired $35,000 to Magee’s account
on August 12, 2011. After Magee received the money from D.C., he
immediately diverted $25,000 for his own personal expenditures. Magee then
deposited the remaining $10,000 into his day-trading account located at
Interactive Brokers (IB). Magee sent weekly emails to J.C. and
D.C. entitled “Trading Update,” which falsely showed the beginning account
principal of $35,000 and the daily gains, even though Magee had diverted
$25,000 of the investors’ money to his own personal use.
November 2011, J.C. and D.C. cashed in J.C.’s 401(k) and wired $240,000 to
Magee’s account. After Magee received the $240,000, he
immediately diverted approximately $160,000 to his personal accounts,
transferring only $80,000 into his IB trading account. Magee again sent
weekly “Trading Update” emails claiming to have deposited the entire $240,000
in the IB account. Though he lost approximately $75,000 by the end of the
month and his trades for November 2011, were a negative 70 percent, Magee listed
200 percent gains in the weekly “Trading Update” emails he sent to J.C. and
D.C, between November 16 2011, and November 30, 2011.
April 10, 2013, in the final “Trading Updates” email Magee sent to J.C. and
D.C., Magee claimed their account balance was over $1.3 million.
However, Magee’s IB account statement for the time period ending March
31, 2013, showed that Magee’s IB account had a negative cash balance of
$9,578. J.C. and D.C. suffered a total loss of approximately
$275,000. Between May 2010 and September 2013, other victims of the
fraudulent scheme in the United States and Canada suffered a total loss of
The Federal Bureau of Investigation
investigated the case. Assistant U.S. Attorney Nancy Larson prosecuted.